Buisness princibles reading tests

You want to hire the best people you can to work in your restaurant. What is the best way to go about that? a) Place an ad in a local paper for all positions, new restaurant b) If you have kids, they will know of classmates looking for work c) Place a sign in the window near the prospective menu and opening date d) Contact an agency if nothing else works e) All of the above

e

Which of the following describes loss? a) A server drops a plate of food on the floor. b) Someone steals your shipment of lobsters. c) A flood ruins your stock. d) All of the above.

d

Which of the following reflect your restaurant's vision? a) Ambiance b) Comfort c) Personality d) All of the above

d

Which of these demographic elements can help you to determine a successful location? a) Who lives there or travels there b) The earnings of those living nearby c) The area's popularity d) All of these

d

Who is responsible for the cleaning standards and practices in your establishment? a) The owner should always perform some of the cleaning to ensure a quality job b) All team members who are servers or bussers have to clean on certain days c) Servers stay late to clean after customers are gone d) Initial set up includes providing for thorough cleaning on a daily basis, perhaps more often for rest rooms, etc. This is critical to management and return of guests

d

Good layout improves work flow which: a) Improves employee productivity b) Reduces the cost of the lease c) Reduces accidents and waste d) A & B only e) A & C only

e

Name the key issues you should pay attention to when hiring: a) The image of the person you are considering hiring b) Their references including a background check for money handlers c) What kind of hours the person will be able to work; some states have curfew laws d) The person must have a clean appearance e) All of the above

e

Secondary data is: a) Usually not as current as primary data b) Collected by someone else c) Good for market research d) Farther from the source e) All of the above

e

Suppliers deliver product to restaurants on a regular schedule throughout the week. You are responsible for checking delivery or having another staff person do so. What are key things to look for? a) Is the quality up to your standards? b) Damaged and unsellable items. c) Is anything missing from the invoice? d) Incorrect items. e) All of the above.

e

The main purpose of the Balance Sheet is to show: a) Track the assets of the business b) Track the liabilities of the business c) Show the equity (or worth) of the business d) None of the above e) A,B and C

e

What methods can be used to prolong excitement about your business? a) Word of mouth. b) Fliers and posters. c) Social networking. d) TV and radio advertisements. e) All of the above.

e

What would comprise good networking to establish your business? a) Passing out fliers in the area with your niche marketing information b) Using social networking such as Twitter and Facebook to spread the word c) Attend organizational meetings such as Chamber of Commerce or Lions Club d) Provide incentives to staff members for prizes e) All of the above

e

When it comes to using font or type set on a menu: a) Very small lettering should be avoided b) Odd shaped or fancy letters are not good c) Try to get as much as you can on a page d) No one reads the menu anyway - they just look at the pictures e) Both a and b f) Both c and d

e

When receiving inventory, you should do which of the following? a) Double check inventory pricing in your system. b) Code your invoicing for accounting. c) Change any out of date prices in your system. d) Mark the delivered products as received. e) All of the above.

e

Which of the following is not a common employee position at a restaurant? a) Host b) Server c) Busser d) Line cook e) Accountant

e

What is the relationship between sample size and false conclusions in market research? a) The larger your sample size, the less chance there is to draw a false conclusion b) The smaller your sample size, the less chance there is to draw a false conclusion c) The larger your sample size, the more chance there is to draw a false conclusion d) None of the above

A

Which of the following demonstrate your restaurant's concept? a) Your food b) Your staff c) Your presentation d) All of the above

d

A restaurant manager should: a) Be present throughout the restaurant b) Remain in the back office so as not to unnerve employees c) Monitor performance through the POS system d) Shadow particular employees

a

A satellite area is an area: a) Outside the kitchen b) Outside the restaurant c) In the surrounding neighborhood d) None of the above

a

Describe how you would involve yourself in the community to generate business. a) Sponsor teams of football, soccer, baseball, basketball b) It is not necessary to get involved in charities in the community c) People don't really care if you are involved or not if they like your food d) Purchase radio advertising

a

Few things will get you into trouble faster with legal and government agencies than not adhering to laws for access for the handicapped. Why? a) More people with handicaps are mobile today, in wheel chairs, with walkers, and various other modalities. They must have access and laws were made to protect their safety. b) It doesn't matter if some one can't fit into the bathroom with their wheelchair. They won't complain. c) Planning enough space for tables is difficult enough without considering wheelchairs, too. d) None of the above

a

From a psychological standpoint, which would be the best price to put on a menu? a) $19.95 b) $20.01 c) $20.00 d) $20.05

a

Hand held scanners are used primarily to: a) Provide accurate counts from bar codes on menu items b) Count how many guests are seated at all the tables c) Check staff in and out when they work d) Keep track of paper goods

a

If you sold 5 menu items one week, then 10 the next, then 12 the next, then 15 the next, what terms best describe this pattern? a) Upward trend b) Downward trend c) Sideways trend d) There is no trend

a

In order to be sure you are not over pouring alcohol, you should: a) Establish controls required for "counting" liquor supply at bar b) Set aside a certain amount only to serve each week c) Have a counter come in every Friday to count bottles d) Don't even worry about it

a

Item A is expensive with a short shelf life. Item B is inexpensive and has a long shelf life. You would would likely have less stock of which item? a) A b) B c) Keep the same amount of stock

a

On a wine list you would want to: a) Start with wine prices by the glass b) End with wine prices by the glass c) Put the most expensive wine first d) Don't show any prices

a

What best describes change in the hospitality industry? a) Change is rapid driven by trends, concepts, fads and people b) Change is slow and evolutionary as people appetites don't change much c) The industry almost never changes--restaurants have been around for thousands of years

a

Which answer would be the best menu organization? a) appetizers, soups & salads, entrees, desserts b) appetizers, entrees, soups & salads, desserts c) breakfast, soups & sandwiches, desserts d) none of the above

a

Which of the following is most useful in monitoring expenses? a) A declining budget worksheet b) Grocery ads for surrounding areas c) Expenses from the previous pizza restaurant d) Your Balance Sheet

a

Which of the following is not an inventory system? a) Guess how many of each item you have. b) Count and record items by hand. c) Use your POS to log items in and out. d) Use a handheld scanner to track inventory

a

Which of the following is the correct formula for COGS? a) = beginning inventory + purchases - ending inventory. b) = beginning inventory - purchases - ending inventory. c) = beginning inventory - purchases + ending inventory. d) = beginning inventory + purchases + ending inventory.

a

Which of the following media is likely to be most expensive? a) Network television b) Cable television c) Radio d) Print

a

Why do you believe many guests enjoy the atmosphere of an open air kitchen? a) People enjoy watching a chef create a masterpiece like they see on Iron Chef b) They believe the food will be served sooner, be more fresh and hot c) If you sit near the chef and get to know him, you'll probably get freebies d) It's fun to watch people watching people

a

Buzz by any other name is still buzz. Just saying it makes one feel as if there is excitement just around the corner. How would you define buzz? a) Employee discussion of your restaurant b) Word-of-mouth or electronic excitement about your business c) Another word for the ambience of your establishment d) A new age advertising media

b

How do you plan your menu so it reflects not only what you wish to eat and drink, but what you hope your customers will also choose? a) Create a menu that is full of photographs and logos b) Carefully plan your menu items and keep them simple so you convey with class rather than too much for anyone to absorb c) Have separate menus for everything such as breakfast, lunch, dinner, dessert d) Have as many food items as possible, so everybody will be happy

b

How does a declining budget work? a) It declines every time you use it b) It shows how much you budgeted versus what you spent so far c) It adds up all your spending and income d) It predicts how much you will need to pay for things

b

If there formerly was a restaurant at the location you want to lease, your success is assured. a) True b) False

b

If you have a large operation, you should conduct a physical count at least? a) Once a week. b) Once a month. c) Once a quarter. d) Once a day.

b

Marketing can also occur inside your restaurant. Which of the following would constitute marketing inside your restaurant? a) A poster of a movie star b) Cardboard "table tents" promoting a special dish c) Signage required by the building code d) Appealing music e) None of the above

b

The set up or flow for your dining area is critical. What is the best way to achieve maximum service ability with the least amount of confusion? a) Maximize the number of table you can legally include b) Determine the best way to navigate tables and remove some if necessary c) Do a buffet only rather than sit down table service d) People don't mind being trampled on or crowded

b

There are a lot of other restaurants near the location you want. You know you have a unique concept. Should you locate there? a) No; do not locate there or the other businesses will take all your customers b) Yes; if you have something unique to offer, customers who come to that area will discover your restaurant and try it out

b

What is the par value for an ingredient? a) The amount to purchase each day b) The amount you want to have on hand at the beginning of the day c) The amount on hand at the end of the night d) The amount of an ingredient used during a day e) The average score of a professional golfer eating that item

b

What is the primary role of contests and games for employees? a) Skills testing b) Improved employee motivation c) Compensation management d) Fun

b

When it comes to portions, you should: a) Pile on as much as a plate will fit b) Have a balance between too much food and too little c) Use as little food as possible so you can make more money d) None of the above

b

Which of the following is a typical radius for conducting market research for a restaurant? a) 1.5 miles b) 15 miles c) 100 miles d) 150 miles

b

Which of these accessibility factors might hinder a location? a) Low crime rate b) One-way street c) Good visibility from the street d) Well-lit parking

b

Your market share is defined as: a) The area's demographics b) The percentage of sales your restaurant will make out of all the sales possible in a particular market c) The amount of marketing time you can buy on the radio d) The percentage of restaurants targeting the same customer segment as your restaurant is targeting

b

A Chamber of Commerce is: a) A room available for local businesses to use for meetings b) A fraternal service organization such as the Elks or Lions c) A group of businesses dedicated to promoting a local economy d) The Federal Government agency charge with regulating interstate commerce

c

Customers may wish to choose items from the menu that are based on suggestions of the proprietor. How would you pair up food items with beverages? a) List all the wines and beers you serve and put an X next to the one with a certain meat or seafood b) Suggest that the guest let you make the choice so as to not confuse someone with little beverage knowledge c) Perhaps the menu could show pairings of steak, for instance, with a red wine; fish or seafood with a white wine d) Put different foods with your most expensive beverages to make your restaurant look "high class"

c

Designing your bar space may require input from someone more experienced who knows the pitfalls. Who would that be? a) The sales representative from the liquor company b) Friends who frequent bars c) Other restaurateurs who have been in the business a long time and know what does not work d) Your accountant

c

Gross margin is a measure of: a) How much a company earns after all expenses b) How much a company earns after taxes c) How much a company earns after removing the cost to produce product(s) d) The margin of gross products

c

How would you motivate your team for their full devotion to your establishment? a) Provide them with snacks before starting their shifts b) Promise them a trip to Disney World c) Support them as a unit with clear policies, attitudes and goals d) They never think about motivation

c

Miguel's restaurant in Virginia Beach has fewer customers in the winter. Why? a) Parking b) Restaurant theme c) There are more tourists in the summer d) Bathroom decor

c

Pricing items on your menu takes a thoughtful process to determine exact costs for food and labor. You are dealing with perception, so it is critical that you pay close attention to what you are doing. How would you determine your prices? a) Rely on what other places are charging for the same food items. b) Give people more than what they think they should get in portions and they will be happy. c) Carefully determine your plate costs of each and every item, as well as beverages. d) Pick pricing that will allow you to pay your expenses to run the business.

c

Setting table spacing in your restaurant is key to inviting your guests back. It is never just about good food. How do you decide spacing of tables? a) It doesn't matter the size of the tables as no one minds having to sit close to others. b) Order tables that are larger than you would normally as you want a crowded feeling, seems busier. c) In some communities, municipal statutes dictate how much space there must be at each table set, between people and walls or floor space. d) The federal government rewards businesses for more tables placed.

c

Specialty items in a restaurant are: a) Special flower arrangements b) Items that cost the most c) Items that only your restaurant offers d) Items that take a long time to prepare

c

Target marketing refers to: a) Picking a specific number as your sales goal and adjusting your marketing to meet the goal b) Focusing all your marketing dollars in a particular media, such as TV or print c) Focusing your marketing on a specific group, such as teens or families d) None of the above

c

The extras people may ask for must be priced along with other items. You must decide ahead of time what those items will be and how much you will charge for them. How will you do that? a) Calculate how much two packets of ketchup might cost and add that to the menu. b) Measure slices of avocado for guacamole and see how much they weigh. c) Count fairly what you think people will order as extras and set a price, but be sure it's on the menu or posted so people don't feel cheated when they get their bill. d) Don't charge for extras. Customers hate that!

c

The industry has a saying called "the circle of life." What does it mean? a) It is the prayer all employees say together when they start their shift b) The vendors use this to talk about their delivery routes c) Teams learn how to make more money by providing better service that grows the business and employee income d) It's not necessary to create actual teams to work together

c

The primary purpose of the Income Statement is to: a) Track the assets of the business b) Track the liabilities of the business c) Show revenue, expenses, and profit d) None of the above

c

What does COGS stand for? a) Cost of Goods & Services. b) Cost of Good Services. c) Cost of Goods Sold. d) Cost of Goods Served.

c

What if you get negative feedback about the ambiance of your dining area? a) It doesn't matter - there will always be enough customers to visit. b) Most people have no idea what is good; they just like to complain all the time c) Assess the source - customers or staff; look at it honestly, watch for a bit, see if it has worked itself out. d) No one will tell anyone else

c

What is the most practical way to check to make sure your service team knows the menu pricing? a) Follow them around to be sure they are telling customers the right prices b) Hire an auditor c) Use your POS system to check that prices are correct d) None of the above

c

What percentage of your expenses are likely to be payroll? a) 5% b) 10% c) 33% d) 75%

c

When considering a location, you could have the best chance of success if: a) There are no other restaurants in the area b) The customers have to go out of their way to find your restaurant c) There is a great deal of traffic and pedestrian traffic nearby d) Your building has a large parking lot

c

Which of the following is NOT a typical demographic category found in secondary market research? a) Age b) Gender c) Price Sensitivity d) Income

c

White space is important on a menu because: a) It isn't - you shouldn't have any b) It looks pretty c) It makes it easier to see separate sections or items d) It is useful when you don't have enough menu items to fill up the page

c

You are considering having an area outdoors for dining but do not know local policies: a) You can do this without asking permission of anyone b) Check with the weather bureau first c) Go to the city government first to check the rules and get a permit

c

Food service is the _____ largest industry in the United States. a) First b) Second c) Third d) Tenth

c.

Your restaurant's accurate positioning in the marketplace is important to: a) Your success b) The bankers and investors you ask for money c) Both a and b d) None of these

c.

What two groups are the primary focus in market research a) Men and women b) Rich and poor c) Survey takers and heads of households d) Customers and competitors

d

Which item would NOT be found on an income statement? a) Balance of a checking account b) Value of wine in storage c) Balance of invoices due to suppliers d) All of the above

d

As a restaurant owner, the purchase price of food, beverages, and ingredients is definitely too costly at what percent of sales? a) 5% or more b) 20% or more c) 25% or more d) 50% or more

d

Facebook is the number one social network in 2011. What do you need to do to participate in Facebook? a) Tell people you know to sign on to Facebook for your establishment. b) Respond to people who ask for you to be a friend on Facebook. c) Let your team members know you want them to help build your fan page on Facebook. Reward them. d) All of the above.

d

Financial statements are important for: a) Managing the business b) Filing accurate tax documents c) Getting financing from banks d) All of the above

d

Having a kitchen book can be good for: a) Training b) Pictures of what the menu items should look like c) Recipes d) All of the above

d

How does locating near the French-Canadian border impact the menu? a) Customers may want French cuisine b) You may need to accept foreign currency c) You may need to print some menus in French d) All of these

d

How would you explain sales of a particular menu item dropping off to nothing this month when sales for that item were at the highest they have ever been last month? a) It is a fluke trend b) It is a regular monthly cycle c) It can't be explained d) It was a fad

d

In which order do items appear on the income statement? a) Profit, revenue, expenses b) Revenue, profit, expenses c) Expenses, revenue, profit d) Revenue, expenses, profit

d

Restaurants should be prepared for health inspections: a) Once a year b) Once a quarter c) Once a month d) At any time

d

The most advantageous spots on the block include: a) At an intersection or corner b) Mid-way down the block, where there are no other businesses or attractions c) Where there is parking d) A and C

d

The selling price of your menu items needs to cover your: a) Food cost b) Staffing expense c) Rent d) All of the above

d

The way to do inventory on bottles of liquid is: a) Taste what's in each bottle. b) Pour liquid into measuring cup and back in bottle. c) Measure on the side of the bottle. d) Estimate how full the bottle is and convert to a decimal

d

To discover what type of restaurant is missing in the area, you can: a) Look at phone book and Internet listings b) Ask people who live there c) Walk and drive around the area d) All of these

d

To make your entre menu easier to use for customers, you should: a) Arrange items by increasing price b) Arrange items by decreasing price c) Price all items the same d) None of the above

d

What are the components of niche marketing? a) It doesn't matter what the components are, just advertise b) You only have to worry about where you are located c) There are no niches left that are untapped in the industry d) Food and beverage, themes, contests, and advertising specific to your target market

d

What kind of awareness is present about consumption of alcohol? a) People will be people, drinking as much as they wish to when paying for it. b) Restaurants are not responsible for what or how much their patrons drink. c) There will always be alcohol abusers with false identity cards. d) The industry is vigilant about awareness, rules, laws, programs, and all restaurant and bar owners must be aware of their responsibilities to their patrons and society when it comes to service of alcoholic beverages.

d

Location expenses for a restaurant include: a) Rent b) Real estate taxes and insurance c) Grounds and building maintenance d) City permits e) Security f) All of these

f